Were membership charges for a personalized dating and matchmaking service subject to Texas sales tax?

Plain-English summary

The requester operated a personalized introduction service. A counselor interviewed each member and evaluated compatibility, the company sent matched members letters containing each other's description and contact information, and the company collected feedback after they met.

The Comptroller stated that the matchmaking service was not subject to sales tax.

What this means for you

The answer covered the personalized matchmaking process described in the attached request. A materially different dating product or bundled sale was not analyzed in this short letter.

Common questions

Were the matchmaking charges taxable? No. What service did the Comptroller review? Counselor profiling, member introductions by letter, and post-meeting feedback. Did the letter cite a specific exemption or rule? No.

Citations and references

• The letter does not identify a numbered statute or administrative rule.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9112L1145C05

Original ruling text

December 31, 1991

Dear **:

Thank you for your letter of November 5, 1991, concerning the tax
responsibilities of your matchmaking service.

The matchmaking service your company provides is not subject to sales tax.

This opinion is based on the facts presented. If there are additional or
different facts, the opinion may change.

If you have any questions or need additional information, please call toll free
1-800-252-5555 Ext. 50037. The regular Austin number is 512-463-4600. You may
also write to Tax Administration Division.

Sincerely,

Lindey Osborne
Tax Administration Division

November 5, 1991

Comptroller of Public Accounts
Capital Station
Austin, Texas 78774

To Whom It May Concern:

I spoke with Dale Lykins as to whether or not our dating service is required to
pay state sales tax. During our conversation on the afternoon of November 5th,
Dale determined that we are not subject to any sales tax; however, he suggeted
that I inquire in writing with you.

COMPANY, established in 1974, is the largest and personalized introduction
service in the nation. We put our members in touch with compatible members
through our time-honored, personalized method of matchmaking, based on a unique
compatibility evaluation process. This process begins in the initial interview
with a COMPANY counselor who is trained and experienced in the art of
"profiling" our members with one another.

Our member then receives an introduction to another member by way of a letter,
which describes the compatible member in addition to that members name and
phone number. The other member receives the same. It is then up to the two
individuals to call one another and set up a meeting or "date." After the two
meet, we get feedback from each member, as to what they liked about the person,
where we can improve in our matching, or if we made a perfect match.

I hope that I have successfully conveyed how the service works. If you have
any questions, I can be reached at **. Please send me official
correspondence for my files that we are not required to charge our clients for
sales tax.

Thank you for your attention to this matter.

Sincerely,

General Manager